TV maker Sharp Corp has been having a very difficult time of late with profitability declining significantly. It was announced today that Qualcomm is set to invest as much is $120 million in Sharp, which would make it the largest shareholder.

One portion of the agreement between the two companies is that Qualcomm's Pixtronix subsidiary will work with Sharp to develop new power efficient displays based on Sharp's IGZO technology.

"With this agreement Sharp will accelerate its strategy for growth in small to medium-sized LCDs," the Japanese company said.

Reuters reports that Qualcomm's initial investment will add up to about $59.91 million and will be made by the end of the year. The remainder of the investment is reportedly conditional on Sharp's ability to turn a profit in the second half of its fiscal year ending on March 31, 2013.

Sharp had previously been courting an investment from Hon Hai Precision Industry Co Limited, which would have made Hon Hai its biggest shareholder. However, talks between Sharp and Hon Hai fell apart as losses mounted for Sharp.